It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Iran Playing 'Chess' With US by Moving Away From the Petrodollar

page: 1
15

log in

join
share:

posted on Feb, 8 2016 @ 11:03 AM
link   



Iran has decided to conduct its oil trade in euros, not US dollars, unconfirmed reports have suggested. Economic analyst Shabbir Razvi told Radio Sputnik that Tehran is apparently playing a "delicate" chess game with Washington.

"Iran is trying to make its relationship with the US and the world more amiable than it has been in recent past. However, at the same time Iran does not want the US to become any stronger. This is really a chess game the Iranians are playing vis-à-vis the US," Director of the International Dialogue Foundation in London noted.


source- Sputnik

Uh oh! Iran's turn for some US "democracy" ?



Iran's oil contracts in euros already include recently signed deals with French Total, Russia's Lukoil and Spanish Cepsa, an unnamed source in state-owned National Iranian Oil Company told Reuters on Friday.

The underlying logic behind Iran's decision is simple: if Tehran moves away from the petrodollar, the US will have less control over the oil market. At the moment, the US dollar is the currency for any multinational commodity transactions, particularly for oil trade.


After the nuke deal, Iran chooses to shift to Euro's ? really ?


"Saddam Hussein began selling oil in euros and we know what happened to Iraq after 2001."



It's all planned out then ?

When the new POTUS takes office, whoever it may be. Surden "evidence" will suddenly emerge for the new POTUS, that somehow Iran haven't kept their promise on the nuke deal. This will be leaked to the press, and a new "Colin Powell"-figure will present at the UN, "clear" evidence on how Iran have fooled the west for years.
The POTUS will be mad, and scream at those who ask questions about the "evidence". And eventually put it down into black/white again;
"either you're with us.."

A huge war will emerge, bringing all the players into action.
Game over?
edit on 8/2/2016 by kloejen because: (no reason given)




posted on Feb, 8 2016 @ 11:07 AM
link   
a reply to: kloejen

That didn't work out so well when Saddam tried to switch to Euros, or when Gaddafi tried to start up the Dinar.

But by all means, go for it. Didn't we just give them something like $100 billion as part of that nuclear deal as well? Kind of an "in your face" move, is this what we get for demonizing Iran for so long?
edit on 8-2-2016 by FamCore because: (no reason given)



posted on Feb, 8 2016 @ 11:10 AM
link   
Of course it's all planned. Iran KNOWS this will end badly for them, so why in the hell would they do it? Because it's what those in power want. Iran is not dumb, they would not be doing this unless there was a reason.



posted on Feb, 8 2016 @ 11:17 AM
link   
Iran has some big ol ____ pulling this knowing the track record of the US response to those that go against the petro-dollar. I say the US response when I mean the global finance cabal. Young US men and women are just the cannon fodder as the US is the global enforcer of the banking cabal's wishes and europe is the financial center with the vatican rounding out spiritual affairs or so I have read somewhere.



posted on Feb, 8 2016 @ 11:20 AM
link   

originally posted by: FamCore
a reply to: kloejen

That didn't work out so well when Saddam tried to switch to Euros, or when Gaddafi tried to start up the Dinar.

But by all means, go for it. Didn't we just give them something like $100 billion as part of that nuclear deal as well? Kind of an "in your face" move, is this what we get for demonizing Iran for so long?



We didn't give them anything, it was theirs to begin with in frozen assets.

They are asking the money to be returned in euros rather than the dollars though.



posted on Feb, 8 2016 @ 11:31 AM
link   
Bibi will be pleased.................



posted on Feb, 8 2016 @ 12:05 PM
link   
a reply to: kloejen

It could also be that Europe and the US, that is, the real people with power in the west beyond politicians and captains of industry have negotiated with the players in Iran. The end result would be EXACTLY what Europe needs right now.

Dont forget that this is the sort of near miraculous thing the EU needed economically after a decade of lesser general wealth and in some cases outright impoverishment. It also helps to get some breathing room when dealing with energy costs. This move by Iran will undoubtedly favor the purchasing power of Europe for oil and hopefully do more than stabilize a broken economy. In the long run this could prove to be very prosperous for Europe and Iran.

I am kind of saying "good".


edit on 2 8 2016 by tadaman because: (no reason given)



posted on Feb, 8 2016 @ 12:15 PM
link   
a reply to: Nexttimemaybe

Gotcha - thank you for clarifying that!

It was frozen assets, already theirs but they were disallowed access until the Iran Nuclear Deal went through. Awesome!



posted on Feb, 8 2016 @ 12:23 PM
link   

originally posted by: 3NL1GHT3N3D1
Of course it's all planned. Iran KNOWS this will end badly for them, so why in the hell would they do it? Because it's what those in power want. Iran is not dumb, they would not be doing this unless there was a reason.


Probably because any rational person would believe the US does not have political strength to start another big war on fabricated lies again. Of course, the western public are not rational nor can they influence the decisions of their governments.

What Iran doesnt get is we really are THAT dumb and will never question the dangers our governmets put in front of us every day.



posted on Feb, 8 2016 @ 01:07 PM
link   
a reply to: MALBOSIA

I agree, also look what happened with libyia, France didnt even wait for the rest of the team, the went all "Leeroyjenkins" and went straight in to save their precious oil.
In this case more than likely they would get the band back together and have Israel sign up, they hate Iran with a passion, and then you would have Israel go full Leeroyjenkins on Iran. i feel USA is in a precarious spot on this due to how their allies could behave.

This is leeroy jenkins.



posted on Feb, 8 2016 @ 02:06 PM
link   
a reply to: FamCore

Ah see some one already cleared up the money thing.

This is a bold move by Iran, one that I am not very fond of. Mainly because I feel like it is a precursor to war like you pointed out with Iraq as well as the op.
edit on thMon, 08 Feb 2016 14:08:28 -0600America/Chicago220162880 by Sremmos80 because: (no reason given)



posted on Feb, 8 2016 @ 02:59 PM
link   
-- That would be a clear message at least, deal with dollas or else... its war games baby. Why they keep hanging on to we the good guys, side of free and peaceful force it is unknown to me, allot of ppl obviously dont care how they do business until it affects their lifes on worse manner.

Would the countries in Europe whom bought Iranian goods have anything to say about US decide to go into Iran to stop this madness?

Surely Europeans have already bow down to US and ask their permission for such deals, or perhaps such a deals are win win were they euro or dollar.

Perhaps its as much a move from EU as from Iran, now that would be interesting.



posted on Feb, 8 2016 @ 03:37 PM
link   
The death of the petrodollar seems to be a recurring topic. It has not really happened yet, has it.

What we have is low oil prices. Well lower than the braekeven price of Iranian oil that is well over $100 per barrel. Iran, like most oil producers is losing money hand over fist.

The petrodollar is pretty irrelevent at the moment.



posted on Feb, 8 2016 @ 03:39 PM
link   
a reply to: tadaman


The end result would be EXACTLY what Europe needs right now.

You may be right. Other than a minimal loss of control for the US, it doesn't hurt the country too much. But it could be beneficial for Europe. And it is in the best interests of the United States to keep Europe as strong as possible.

However, the EU is at a critical point in its existence. I don't know for sure, but the bad publicity the EU is getting because of the refugee issue couldn't be good for business. And the possibility that the UK will leave the EU could be disastrous for the Euro.

A precipitous fall of the Euro against the American Dollar would certainly not be in Iran's best interest either. Especially if the contract that Iran signed with the EU is for a fixed price.

-dex



posted on Feb, 8 2016 @ 03:58 PM
link   
I think this whole Iranian deal is either a way to save the face for the west in light of an unstoppable "return to the economy" of Iran, or a preemptive move to create pressure on war against them.

Divide and conquer played on the other side, with Iran putting EU against the USA at a time where western european approval for americans is at an all time low. However the situation in Europe is so desperate that I don't see anyone condemning this outrageous move, especially in Italy and France where Kahmenei just went in an unprecedented visit (how coincidental).

On a sidenote, the Dollar is vastly overvalued, like if not more than the Euro. The big difference is not that the Euro is stronger in any shape or form, but that on the other side of the Iron Curtain they want both a customer and "non-ally-of-my-enemy" for lack of better words.

p.s. It's also very likely that these people know things we don't know, maybe yet, maybe never. That's how they make money and we gtfo.



posted on Feb, 8 2016 @ 10:56 PM
link   
a reply to: kloejen

There is not 1 petro currency. Any nation that exports oil is considered a petro currency. The same holds for reserve currencies, where the Euro is also listed as one.

I am not entirely sure why you guys get excited over this.



posted on Feb, 9 2016 @ 06:18 AM
link   

originally posted by: paraphi
The death of the petrodollar seems to be a recurring topic. It has not really happened yet, has it.

What we have is low oil prices. Well lower than the braekeven price of Iranian oil that is well over $100 per barrel. Iran, like most oil producers is losing money hand over fist.

The petrodollar is pretty irrelevent at the moment.


I'm wondering if this 100 dollar per barrel cost is based on USA cost of extraction, wage cost, material cost etc.

100 is worth relatively more or less depending on where in the world you are.

Hope you see where I'm going with this.



posted on Feb, 9 2016 @ 02:21 PM
link   
a reply to: Xcathdra


I am not entirely sure why you guys get excited over this.

I'll admit that I don't know much about high finance. But my impression has been that trading in a currency other than the Dollar (i.e., Petrodollar) would not be healthy for the US economy.

So, I did a little research in response to your post. This article provides some information that is useful in describing why the Petrodollar is important to the US.

growing global demand for oil leads to an increase in U.S. dollar demand. This artificial demand for U.S. dollars has provided remarkable benefits for the U.S. economy. It has also required the Federal Reserve to keep the dollar in plentiful supply.

By perpetually expanding the U.S. money supply, America’s standard of living increases as well.

The problem with this situation is that the only way that it can be sustained is if the demand for the dollar and for U.S. debt securities remains consistently strong.

Grasping this last point is extremely important. For if the artificial global dollar demand, made possible by the petrodollar system, were ever to crumble, foreign nations who had formerly found it beneficial to hold U.S. dollars would suddenly find that they no longer needed the massive number that they were holding. This massive number of dollars, which would no longer be useful to foreign nations, would come rushing back to their place of origin… America.

Obviously, an influx of dollars into the American economy would lead to massive inflationary pressures within our economic system.

It is difficult to overstate the importance of this concept as the entire American monetary system hinges on this “dollars for oil” system. Without it, Washington would lose its permission slip to print excessive numbers of dollars.

I've never been particularly interested in this high finance field. Mainly because I'm closer to being broke than being able to invest.

However, the information in that article indicates that a significant shift away from trading petroleum in Dollars would cause the US Economy to crash as all that excess money the Fed has printed over the years is no longer valuable.

If anyone has a better understanding of this topic, that is contrary to the link I posted, I'd be interested in hearing about it.

-dex



posted on Feb, 10 2016 @ 01:29 AM
link   
a reply to: paraphi

The economics of the dollar has no relation to what Iran chooses to deal with.

The size of the bond market and currency markets is enormously larger (like 1000x) than the petroleum trade.

The Chinese have been selling far, far, more dollar assets than Iran could ever hope to have, and yet the US dollar is quite high now relative to everybody else.

Interest rates and macroeconomics matter much more than any choice by petrostates. People totally over exaggerate how much petroleum sales by single countries and their currency matters.

Everybody in real economics and finance knows this---they care not one bit. There is no discussion among the pros in Bloomberg, WSJ or in the US Treasury or JP Morgan or Goldman.

For example this type of statement is totally false:



It is difficult to overstate the importance of this concept as the entire American monetary system hinges on this “dollars for oil” system. Without it, Washington would lose its permission slip to print excessive numbers of dollars.


Big macroeconomics and financial systems and a hundred years of history make the US dollar widely accepted and used worldwide. After all, in the Cold War, the USSR and Eastern Europe was nearly totally cut off from Western financial system, and their total GDP mattered far more than Iran. Did that hurt the dollar? No.

Decisions by the Fed, ECB, Japan and Chinese central banks and their countries private banks matter. Not Iran's trade in oil.
edit on 10-2-2016 by mbkennel because: (no reason given)




top topics



 
15

log in

join